The Next Web reports, citing Microsoft sources, that Apple has rejected updating Microsoft's SkyDriveiOS app, because the two parties couldn't agree to terms. Apple wants its usual share of 30%, while Microsoft doesn't want to share this revenue stream with Apple. As the blog highlights, the problems surfaced when Microsoft enabled the ability for SkyDrive uses to expand their storage by purchasing space on the service.

From that point, the company was not permitted to update its application in the iOS App Store. The reason? It doesn’t pay Apple a 30% cut of subscription revenue generated by the application through the paid, additional storage. Microsoft, TNW has learned, has a new version of the application ready to go, including a key bug fix that would rectify a crashing bug, but cannot get it through.

I don't know if Microsoft's developers have read the App Store review guidelines, but there is a line in there stating: "Apps utilizing a system other than the In-App purchase API to purchase content, functionality or services in an app will be rejected."

In other words, it happened exactly as they had expected, but now they are creating hype around it. Microsoft made an attempt to reach a compromise by removing all subscription services, but Apple's position is clear: if you did it once, there is a possibility that you will do it again. So, the Cupertino company refused to reach an agreement with its competitor. Furthermore, developers that integrate SkyDrive into their own apps are experiencing delays in approval for updates from Apple. I guess the reason is pretty obvious.

Microsoft has confirmed its latest SkyDrive iOS update is being delayed by Apple. A spokesperson says: "Similar to the experiences of some other companies, we are experiencing a delay in approval of our updated SkyDrive for iOS. We are in contact with Apple regarding the matter and hope to come to a resolution," The Verge reports.

It seems as though Apple is in the right on this one, since they're just enforcing terms that have been there since the beginning. Microsoft shouldn't just get a free pass because they're Microsoft, so it's not surprising that they've been denied the update. What do you think about the SkyDrive issue?